Knowledge, Innovation and Agglomeration - regionalized multiple indicators and evidence from Brazil



regions contain important universities and research centers which account for a significant
proportion of Brazil’s scientific production.

3. Indicators of local capabilities: scientific, technological and support infrastructure
institutions

Complementing the quantitative indicators, and as an additional step in the line of
argument underlying this paper, we compiled data and information on the geographical
distribution of the institutions in Sao Paulo State that provide firms with support in the form of a
scientific, technological and service infrastructure. These institutions perform functions that
enable firms to enhance their technical, technological and innovation capabilities. In particular,
they are higher education and research centers, secondary-level technical and vocational training
institutions, research labs, and technology centers.

The method was as follows: (1) use of the 2002 RAIS database on employment and
numbers of establishments in R&D, higher education, and vocational education according to the
National Classification of Economic Activities (CNAE); (2) direct collection of information on
the Sao Paulo State system of education and training for all levels, from degree courses in
engineering and other technological areas to industrial training courses; (3) direct collection of
information on institutions providing firms with support infrastructure and services in
technological areas and innovation support, mainly comprising technology centers and R&D
labs.15 It was not always possible to quantify this information in terms of budgets and numbers of
employees, for example. Nor was it possible to appraise the extent to which firms actually made
use of these institutions or the quality of the services provided.

Space limitations prevent us from presenting the results in detail on this occasion.16 For
this reason we will not discuss the findings based on the RAIS data, which anyway overlap to a
considerable extent with the data collected directly. The following paragraphs contain a summary
of the most important aspects of the regional distribution of the institutions comprising the
scientific, technological and support infrastructure for innovation activities pursued by firms.
Moreover, the information on the location of these institutions and the analysis of the role they
play is more relevant to the vertical cross-section of local production and innovation systems
discussed in this paper (see Section 4). It is in these systems that the role of support institutions is
usually most relevant in terms of reinforcing the innovation capabilities of local firms.

3.1 Educational institutions offering technical, technological & vocational qualifications

Information was collected for educational establishments offering technical, technological
and vocational qualifications at various levels, from university degrees to diplomas or certificates
in different areas of technology via secondary-level technical courses and industrial training. The
information was then broken down by micro-region to show the distribution of these courses
throughout the state as part of the ST&I infrastructure.

With regard to undergraduate courses, information was collected on courses leading to
bachelor’s degrees in engineering, pharmacy, biochemistry, chemistry, biology, and agronomy.
This was done using data supplied by INEP,17 an agency of the Ministry of Education responsible

15 Information was also collected on industry and professional associations, but these were not found to be very
active in supporting innovation by firms. With a few outstanding exceptions, they confined themselves to providing
services of a general nature.

16 A detailed discussion of the results as well as the methodology is in Suzigan et al. (2004).

17 Instituto Nacional de Estudos e Pesquisas Educacionais Arnsio Teixeira. The exam tests student achievement in
the most widely followed courses (management, law, engineering, medicine etc). Students are not judged on their



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